Strategy launches Bitcoin monetization program and authorizes $2 billion in buybacks

Strategy announces an extensive Digital Credit Capital Framework, which includes a Bitcoin monetisation programme, two billion dollars in buyback authorisations and an increased dividend percentage for its STRC shares. The company aims to strengthen the quality of its credit position while maintaining its long-term exposure to Bitcoin.

Bitcoin is available at OKX and Bybit.

Five pillars for the new framework

The Digital Credit Capital Framework of Strategy consists of five components. First, the company introduces a board-approved USD reserve policy. Additionally, it adjusts the dividend policy for STRC and launches a buyback programme for its so-called Digital Credit Securities. The company also approves a buyback programme for Class A ordinary shares and introduces a BTC monetisation programme.

This last component is notable: it allows Strategy to sell Bitcoin to build reserves, finance dividends and interest payments on preferred shares, and conduct share buybacks when that is more advantageous than issuing new shares. At the same time, the company authorises up to $1 billion in buybacks of its Digital Credit Securities and another $1 billion in buybacks of MSTR shares.

Saylor: Bitcoin remains primary reserve asset

Founder and Executive Chairman Michael Saylor reacts to the announcement and states that Strategy fully stands behind Bitcoin as its primary reserve asset. According to him, however, Digital Credit requires liquidity, discipline and active capital management. The framework explains how the company deploys its capital management tools while maintaining its long-term commitment to Bitcoin.

In addition to the monetisation programme, Strategy raises the annual dividend percentage for STRC from 11% to 12%. That is a direct improvement for holders of those preferred shares. The company also reports that the framework is intended to lower expected dividend payments on preferred shares when that is advantageous, according to Strategy in the press release. The Bitcoin price is currently hovering around $60K, an increase of 0.3% in the past 24 hours.